The United Kingdom’s decision to block Microsoft’s $US69 billion ($104 billion) takeover of video game giant Activision Blizzard has left the company’s ambitious plans for the industry in further turmoil. The Competition and Markets Authority of the UK, which is the nation’s equivalent to the Australian Competition and Consumer Commission, has blocked the deal due to concerns that it would lead to reduced innovation and less choice for consumers in the future.
The takeover was seen as a way for Microsoft to expand its presence in the ever-growing cloud gaming market. By acquiring Activision Blizzard, Microsoft would have gained access to some of the industry’s most popular franchises, including Call of Duty, World of Warcraft, and Overwatch, as well as the company’s technology and infrastructure.
This would have allowed Microsoft to gain a foothold in the cloud gaming market and potentially become a dominant force in the industry.
Given the immense revenue that the video game industry generates, surpassing film and music combined, and the fact that Activision’s Call of Duty franchise is one of the most successful video games ever created, it is no surprise that Microsoft’s proposed takeover of the company has been met with immense scrutiny.
“The Competition and Markets Authority (CMA) presented evidence that Microsoft, who holds a strong position in cloud gaming services, would gain commercially from making Activision’s games exclusive to its service,” the British regulator said in a statement.
